Bloomberg Analyst: Misjudgment of Bitcoin ETF Could Reduce Market Volatility, High Volatility and High Risk Attributes to Persist

Odaily News Bloomberg senior ETF analyst Eric Balchunas posted on X, stating that his previous assessment that the investor structure of Bitcoin ETFs would be stronger than market expectations still largely holds true. However, his expectation that ETF inflows would reduce severe market volatility has proven to be incorrect. Eric Balchunas mentioned that he originally believed retail ETF capital would replace the highly speculative retail investors present before the FTX incident, thereby enhancing market stability. However, he did not fully account for the selling pressure from early holders (OGs) concentratedly reducing positions at high levels. He also pointed out that Bitcoin's approximately 450% rise over two years is itself a potential risk signal, as rapid gains are often accompanied by high volatility. Therefore, Bitcoin's attributes as a high-volatility, high-risk asset are likely to persist for the foreseeable future.